purchase of a car always means the purchase of a final good do you agree
Answers
Answered by
16
Answer:
No If it is used by household for self consumption it is called final good. If on the other hand if the car is purchased by a person in order to drive it to earn bread and butter than in that situation it intermediate consumption...
Answered by
26
Answer: No. It depends on the end use of the car.
Explanation:
If it is purchased by a household then it is a final good. It is a consumer durable good.
If it is purchase by a taxi operator, then again it is a final good, as it is to be finally used by the producer as a fixed asset.
However, if the car is purchased by a retail dealer from the factory for the purpose of resale, it is to be treated as intermediate good.n:
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